There are many things that can impact the cost of you insuring your car in Texas, such as where you live and park it. We analyzed rates using a 30 year-old man as the benchmark motorist across multiple insurers in nearly 300 cities to evaluate the impact of location on costs. We found that our sample driver's quotes ranged by as much as 67% between Houston and Memphis, which translated into a $372 difference in annual premium for him. Houston ranked as the most expensive city while Memphis was the least expensive for our driver.

Least Expensive Places

The five cities we identified as the most affordable location all have something in common: lower population density as well as lower average travel time to work in comparison with the most expensive cities. Geographically speaking, they are all situated northwest of Dallas and Austin. For our sample motorist, just living in any one of these cities would make his rates $100+ lower than his average cost ($677) in Texas. The average rate we obtained in our study for these places ranged between $550 and $560.

#1 Memphis

Among the cities we featured in the study, Memphis had the lowest total population and the second lowest population density. Rates here (around $558) were 18% lower than the Texas state average for our sample driver. It is the county seat of Hall County and is located at the junction of US highway 287 and State highway 256. The average time people take to get to work here is around 16 minutes.

#2 Ballinger

The county seat of Runnels County, Ballinger had the second lowest annual costs on our study. For our sample 30 year-old, quotes here were 17% lower than the Texas state average costs and totaled around $561 for a 12-month policy. The average commute time here is around 18 minutes.

#3 Childress & Denver City

Just fractionally more expensive than Ballinger, Childress and Denver City tied as our third least expensive places for insurance coverage. Again using our benchmark motorist, quotes in Childress and Denver City were around $563 to insure a car for a year. In comparison with the state average, costs in these two cities was 17% less costly compared to the typical spot in Texas.

#5 Spearman

Rounding out our study's five least expensive Texas cities is Spearman, the county seat of Hansford County. It is situated at the northernmost tip of Texas, just 27 miles south of the Texas-Oklahoma state border. Our motorist’s average annual insurance rates here were around $564. The average time to travel to work in Spearman is around 17 minutes.

Most Expensive Places

Our sample driver found his most expensive quotes in these five cities, which are all located southeast of the state capital. We found his average annual auto insurance rates in these cities to be $200 to $300 higher than the state average costs. In other words, all things equal, costs for the same coverage on the same car was 32% higher than the Texas mean. Overall, these five cities have a much higher population density and average commute time than the least expensive places.

#1 Houston

The most populous city in Texas, Houston, is where our sample driver found his insurance to be the most expensive out of 293 locations. Our benchmark 30 year old driver's rates were $930 for a 12-month policy and 37% higher than the state average. As much as 72% of its 2 million residents drive alone to work, with an average commute time of 26 minutes – the longest among our 10 featured cities.

#2 McAllen

Lower than Houston but also in the $900 range, the average cost in McAllen was around $915 for our profiled motorist, which placed it as the second most expensive on our list. Our sample driver’s quotes here were 35% higher than the state’s average. McAllen’s population numbers around 135,000, and its population density is the second highest among our featured cities, at 2,776 residents per square mile. Average commute time here is around 20 minutes.

#3 Mission

Also a part of Hidalgo County, Mission ranked the third most expensive city to insure our driver's Toyota Camry in Texas, with average annual rates 31% higher than the state’s average. Our benchmark driver’s quotes were around $890 here for a 12-month policy. The average travel time to work in Mission is 24 minutes.

#4 Dallas

The only other major Texas city among our 10 featured cities, Dallas’s average annual costs were the 4th most expensive for our sample driver. Costs here averaged 29% higher than the state average; the annual cost for the example driver in our study was $873 for 12 months of coverage. The average commute time here is the second highest among the featured cities: 25 minutes.

#5 Richmond

Roughly 40 minutes away from Houston is our 5th most expensive city in our insurance study. Our motorist’s quotes here were around $871, nearly $200, or 19%, higher than the state’s average. With a resident count just below 12,000, its population density is higher than that of Mission at around 2,750 per square mile. The average commute time here rounded up to 24 minutes.

How Costs Differ in Texas by Place

We sampled a total of 293 cities and towns in Texas, and found the Texas average annual insurance rate to be $677 for our sample motorist. While the incremental difference between cities can be as little as $1, overall there is a $372 difference between the most expensive and least expensive Texas city. Here is a table that lists all 293 cities with their respective average annual rate, ranked from the lowest to the highest.

Rank

City

Average Annual Rate

% Difference from State Average

1

Memphis

$558

-18%

2

Ballinger

561

-17%

3

Childress

563

-17%

4

Denver City

563

-17%

5

Spearman

564

-17%

6

Booker

565

-16%

7

Munday

566

-16%

8

Coleman

566

-16%

9

Haskell

567

-16%

10

Perryton

568

-16%

11

Snyder

570

-16%

12

Shamrock

570

-16%

13

Spur

571

-16%

14

Quanah

571

-16%

15

Colorado City

573

-15%

16

Wellington

573

-15%

17

Rotan

573

-15%

18

McCamey

574

-15%

19

Borger

575

-15%

20

Seymour

575

-15%

21

Matador

575

-15%

22

Friona

576

-15%

23

Vernon

578

-15%

24

Eden

578

-15%

25

Jayton

578

-15%

26

Throckmorton

579

-15%

27

Canadian

579

-15%

28

Sonora

579

-15%

29

Monahans

580

-14%

30

Floydada

581

-14%

31

Clarendon

581

-14%

32

Crowell

582

-14%

33

Big Lake

583

-14%

34

Silverton

583

-14%

35

Paducah

584

-14%

36

Brownfield

584

-14%

37

Miami

584

-14%

38

Presidio

584

-14%

39

Eldorado

585

-14%

40

Pampa

586

-13%

41

Morton

586

-13%

42

Aspermont

587

-13%

43

Sterling City

587

-13%

44

Van Horn

588

-13%

45

Alpine

588

-13%

46

Dumas

588

-13%

47

Ralls

589

-13%

48

Robert Lee

590

-13%

49

Fort Davis

590

-13%

50

Sweetwater

590

-13%

51

Seminole

591

-13%

52

Dalhart

591

-13%

53

Kermit

591

-13%

54

Fort Stockton

592

-13%

55

Clyde

592

-13%

56

Pecos

592

-13%

57

Post

592

-12%

58

Littlefield

593

-12%

59

Brady

593

-12%

60

Garden City

594

-12%

61

Hereford

594

-12%

62

Ozona

594

-12%

63

Muleshoe

594

-12%

64

San Angelo

594

-12%

65

Mertzon

595

-12%

66

Lamesa

595

-12%

67

Gail

596

-12%

68

Dimmitt

596

-12%

69

Stratford

596

-12%

70

Plainview

596

-12%

71

Dryden

597

-12%

72

Albany

597

-12%

73

Breckenridge

598

-12%

74

Stanton

599

-12%

75

Crane

599

-11%

76

Tahoka

602

-11%

77

Comanche

603

-11%

78

Anson

604

-11%

79

Panhandle

605

-11%

80

Hartley

605

-11%

81

Junction

606

-11%

82

Tulia

606

-10%

83

Fort Hancock

610

-10%

84

Andrews

611

-10%

85

Menard

612

-10%

86

Levelland

612

-10%

87

Cisco

613

-10%

88

Brownwood

614

-9%

89

Bowie

614

-9%

90

Graham

615

-9%

91

Goldthwaite

616

-9%

92

Midland

616

-9%

93

Big Spring

617

-9%

94

Claude

619

-9%

95

Guthrie

620

-8%

96

Whitney

621

-8%

97

Vega

622

-8%

98

Clifton

622

-8%

99

Holliday

626

-8%

100

Wichita Falls

627

-7%

101

Hamilton

628

-7%

102

Mexia

630

-7%

103

Mineral Wells

633

-6%

104

La Grange

635

-6%

105

Mason

635

-6%

106

Abilene

637

-6%

107

San Saba

638

-6%

108

Henrietta

639

-6%

109

Jacksboro

641

-5%

110

Kerrville

643

-5%

111

Sulphur Springs

644

-5%

112

Glen Rose

649

-4%

113

Del Rio

649

-4%

114

Gatesville

649

-4%

115

Paris

650

-4%

116

Fairfield

651

-4%

117

Stephenville

653

-4%

118

Kenedy

653

-4%

119

Lampasas

653

-4%

120

Cooper

653

-4%

121

Gainesville

654

-3%

122

Rocksprings

655

-3%

123

Brackettville

656

-3%

124

Bonham

656

-3%

125

Mentone

657

-3%

126

Malakoff

657

-3%

127

Gonzales

657

-3%

128

Buffalo

657

-3%

129

Leakey

659

-3%

130

Columbus

661

-2%

131

Tennessee Colony

662

-2%

132

Hearne

662

-2%

133

Killeen

663

-2%

134

Uvalde

663

-2%

135

Emory

663

-2%

136

Cuero

664

-2%

137

Weatherford

664

-2%

138

Beeville

665

-2%

139

Belton

665

-2%

140

Palestine

665

-2%

141

Marlin

665

-2%

142

Denison

666

-2%

143

Clarksville

667

-1%

144

Smithville

669

-1%

145

Giddings

671

-1%

146

Sherman

671

-1%

147

Llano

674

0%

148

Edna

674

0%

149

Brenham

674

0%

150

Waco

674

0%

151

Mount Pleasant

675

0%

152

Odessa

675

0%

153

Corsicana

676

0%

154

Athens

676

0%

155

Fredericksburg

677

0%

156

Three Rivers

678

0%

157

El Paso

679

0%

158

Comfort

679

0%

159

Atlanta

679

0%

160

Rockdale

680

0%

161

Caldwell

680

0%

162

Daingerfield

680

0%

163

Goliad

680

1%

164

Pearsall

682

1%

165

Seguin

683

1%

166

Refugio

685

1%

167
Bandera

686

1%

168

Commerce

686

1%

169

Mount Vernon

687

2%

170

Center

688

2%

171

Rusk

689

2%

172

Bastrop

689

2%

173

Hallettsville

689

2%

174

Taylor

690

2%

175

Lockhart

691

2%

176

San Marcos

692

2%

177

College Station

692

2%

178

Quitman

693

2%

179

Cotulla

693

2%

180

Texarkana

693

2%

181

Lexington

693

2%

182

Floresville

694

2%

183

Amarillo

694

3%

184

Crockett

694

3%

185

San Augustine

695

3%

186

Canton

696

3%

187

Pittsburg

697

3%

188

Greenville

697

3%

189

Jacksonville

697

3%

190

Bellville

698

3%

191

El Campo

698

3%

192

Ben Wheeler

698

3%

193

Jefferson

699

3%

194

Cleburne

700

3%

195

Pleasanton

700

3%

196

Bryan

700

3%

197

Carrizo Springs

700

3%

198

Burnet

701

3%

199

Sealy

701

3%

200

Hondo

701

4%

201

Tilden

702

4%

202

Decatur

703

4%

203

Granbury

705

4%

204

Crystal City

708

5%

205

Lubbock

708

5%

206

Madisonville

710

5%

207

Carthage

712

5%

208

Blanco

712

5%

209

Castroville

713

5%

210

Poteet

713

5%

211

Denton

714

5%

212

Freer

715

6%

213

Canyon Lake

715

6%

214

Kyle

715

6%

215

Wharton

718

6%

216

Joshua

720

6%

217

Newton

720

6%

218

Quinlan

721

7%

219

Garrison

723

7%

220

Trinity

723

7%

221

Livingston

725

7%

222

Hemphill

726

7%

223

Nacogdoches

727

7%

224

Victoria

728

7%

225

Navasota

729

8%

226

Round Rock

730

8%

227

Laredo

730

8%

228

Henderson

732

8%

229

Lufkin

734

8%

230

Huntsville

738

9%

231

Port Lavaca

738

9%

232

Universal City

741

10%

233

Rockport

742

10%

234

Gilmer

744

10%

235

Waxahachie

744

10%

236

Jasper

747

10%

237

Woodville

747

10%

238

Kingsville

748

10%

239

Ingleside

748

11%

240

Shepherd

750

11%

241

Lewisville

752

11%

242

Marshall

753

11%

243

Falfurrias

756

12%

244

Bay City

757

12%

245

Palacios

758

12%

246

Tyler

763

13%

247

Longview

764

13%

248

Zapata

768

14%

249

Van Vleck

769

14%

250

Lake Jackson

772

14%

251

Alice

773

14%

252

McKinney

775

14%

253

Fort Worth

775

14%

254

Conroe

775

15%

255

Kaufman

776

15%

256

Eagle Pass

776

15%

257

North Richland Hills

777

15%

258

Austin

780

15%

259

Hempstead

781

15%

260

Allen

786

16%

261

Ferris

787

16%

262

Arlington

788

16%

263

Plano

790

17%

264

Rockwall

795

17%

265

Sarita

798

18%

266

Pearland

800

18%

267

Guerra

803

19%

268

Silsbee

807

19%

269

Carrollton

814

20%

270

Raymondville

814

20%

271

San Antonio

820

21%

272

Liberty

825

22%

273

Rio Grand City

825

22%

274

Corpus Christi

833

23%

275

Dickinson

836

24%

276

Winnie

837

24%

277

Orange

844

25%

278

Brownsville

846

25%

279

Galveston

848

25%

280

Harlingen

855

26%

281

Los Fresnos

856

26%

282

Sugar Land

857

27%

283

Mesquite

860

27%

284

Beaumont

862

27%

285

Needville

864

28%

286

Irving

865

28%

287

Spring

869

28%

288

Humble

869

28%

289

Richmond

871

29%

290

Dallas

873

29%

291

Mission

890

31%

292

McAllen

915

35%

293

Houston

930

37%

How We Conducted the Study & Texas Minimum Coverage Requirements

The rates used in this study were obtained from Texas Department of Insurance data. The rates included estimated premiums from 28 auto insurance companies licensed in Texas, for a male driver in his 30s living in each of the 314 zip codes that spread across 293 cities.

For the purpose of the study – to see how cities in Texas ranked based on auto insurance costs – we kept the driver profile as well as policy coverage consistent, changing only the location where the cost was obtained. The coverage amount used is just above the Texas state minimum insurance requirements. The comparison is listed in the following table:

Coverage Type

TX Min. Limits

Study Limits

Bodily Injury

$30,000 per person / $60,000 per accident

$50,000 per person / $100,000 per accident

Property Damage

$25,000 per accident

$50,000 per accident

Sources:

Census Population and Commute Time: http://www.census.gov/quickfacts/

Texas Department of Insurance: http://www.tdi.texas.gov/

Mark is a Senior Research Analyst for ValuePenguin focusing on the insurance industry, primarily auto insurance. He previously worked in financial risk management at State Street Corporation.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Advertiser Disclosure: Some of the offers that appear on this website are from companies which ValuePenguin receives compensation. This compensation may impact how and where offers appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products. For more information please see our Advertiser Disclosure.